HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1239 Broadband Internet Infrastructure
SPONSOR(S): Commerce Committee; Ways & Means Committee; Tomkow and others
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Tourism, Infrastructure & Energy Subcommittee 15 Y, 1 N Willson Keating
2) Ways & Means Committee 15 Y, 1 N, As CS Berg Aldridge
3) Commerce Committee 22 Y, 0 N, As CS Willson Hamon
SUMMARY ANALYSIS
Broadband Internet service has become an essential component of daily life, yet some parts of Florida lack
access to this service. To address this issue, various federal programs are available to support the expansion
of broadband Internet service. The Florida Office of Broadband (Office), within the Department of Economic
Opportunity (DEO), exists to facilitate the expansion of broadband Internet service, though Florida currently
offers no funding mechanisms for such expansion.
The bill creates two new programs to support the expansion of broadband Internet service to consumers
without access to service.
First, the bill creates a program within the Office to award grants, subject to appropriation, to applicants who
seek to install or deploy infrastructure that expands broadband service to unserved areas. The bill specifies the
types of entities eligible for such grants, provides application requirements and evaluation criteria, and requires
the Office to enter into an agreement with each grant recipient that specifies performance conditions, including
potential sanctions. The bill establishes a process by which an existing broadband provider may challenge a
grant application on the grounds that the provider already offers or plans to offer service in the area at issue.
The bill limits grant awards to 50 percent of the total cost of a project, but no more than $5 million per grant,
and prohibits grant awards for projects that receive other federal funding. The bill requires the Office to prepare
an annual report summarizing the activity under this program.
Second, the bill requires municipal electric utilities, through July 1, 2024, to offer broadband service providers a
discounted rate of one dollar per attachment per year for any new pole attachment necessary to make
broadband service available to an unserved or underserved consumer within the utility’s service territory. The
bill provides terms for these discounted attachments. The bill also provides safety and reliability standards for
pole attachments and specifies each party’s responsibility for costs associated with replacement poles
necessary to make attachments. The bill prohibits municipal electric utilities from raising their current pole
attachment rates for broadband providers before July 31, 2022. The bill requires local technology planning
teams established by the Office to work with rural communities to help identify unserved and underserved
consumers and to work with broadband providers to identify opportunities and reduce barriers to the
deployment of service.
The bill amends and creates definitions applicable to these programs and provides DEO with rulemaking
authority to implement these programs.
The bill does not appear to have a fiscal impact on state government. The bill will likely have a negative impact
on local government revenues as a result of the discounted pole attachment rates.
This bill may be a county or municipality mandate requiring a two-thirds vote of the membership of the
House. See Section III.A.1 of the analysis.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 4/20/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Broadband Internet Deployment
Fixed and mobile broadband Internet services provide access to numerous employment, education,
entertainment, and health care opportunities.1 Communities that lack broadband access can have
difficulty attracting new capital investment. While Florida’s urban areas are served at a fixed broadband
coverage rate of 98 percent, its rural areas are served at a rate of 78.6 percent.2 This disparity is
caused primarily by high per-unit construction costs required to build broadband infrastructure across
larger swaths of rural geographic areas.3
The recent COVID-19 pandemic has enhanced the need for broadband Internet access in everyday
life. Studies indicate that broadband Internet access matters for jobs, income, business relocation, civic
engagement, and health.4 In addressing broadband Internet access issues, states have established
broadband offices and created special funding programs to offer financial incentives for broadband in
lower density areas.5 Additionally, as schools go online, data indicates that low income households
disproportionally lack access to broadband Internet service, which puts their children at risk of falling
behind.6
Federal Broadband Initiatives
In January 2020, the Federal Communications Commission (FCC) established the Rural Digital
Opportunity Fund (Fund) to fund the deployment of broadband networks in rural America over the next
decade. The program will consist of two phases. Using data from the FCC’s previous mapping efforts,
the first phase began in 2020 and made available up to $16 billion to target census blocks that are
wholly unserved with fixed broadband speeds of at least 25 megabits per second (Mbps) downstream
and 3 Mbps upstream (25/3 Mbps). 7 The winning bidders from the first round under Phase I were
announced in December 2020, with entities that bid to provide service in Florida receiving over $190
million over the next 10 years. The FCC is in the process of reviewing documents regarding the winning
bids.8
1
U.S. Federal Communications Commission, 2018 Broadband Deployment Report, at 1 (Feb. 2, 2018), available at
https://docs.fcc.gov/public/attachments/FCC-18-10A1.pdf (last visited Feb. 11, 2021).
2
U.S. Federal Communication Commission, 2021 Broadband Deployment Report at 63. (Jan. 19, 2021), available at
https://docs.fcc.gov/public/attachments/FCC-21-18A1.pdf (last visited Feb. 12, 2021). For purposes of this data, ‘fixed broadband
services’ are measured at 25 megabits per second downstream and 3 megabits per second upstream.
3
American Broadband Initiative, Milestones Report, at 11 (Feb. 13, 2019), available at
https://broadbandusa.ntia.doc.gov/sites/default/files/resource-files/american_broadband_initiative_milestones_report_feb_2019_0.pdf
(last visited Feb. 12, 2021).
4
COVID-19 lockdowns expose the digital have-nots in rural areas – here’s which policies can get them connected (Sep. 2, 2020).
https://theconversation.com/covid-19-lockdowns-expose-the-digital-have-nots-in-rural-areas-heres-which-policies-can-get-them-
connected-144324 (last visited Feb. 12, 2021).
5
Id.
6
New American Economy Research Fund, Back to School: A Look at the Internet Access Gap. (Aug. 6, 2020).
https://research.newamericaneconomy.org/report/internet-access-covid-19/ (last visited Feb. 12, 2021).
7
U.S. Federal Communications Commission, FCC Launches $20 Billion Rural Digital Opportunity Fund,
https://www.fcc.gov/document/fcc-launches-20-billion-rural-digital-opportunity-fund-0 (last visited Feb. 11, 2021).
8
U.S. Federal Communications Commission: https://www.fcc.gov/document/auction-904-winning-bidders (last visited February 22,
2021).
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The FCC is in the process of adopting more accurate broadband deployment data, including whether
broadband Internet service is available to residential and/or business customers in a specific area.9
Using this more precise data, the second phase of FCC grants will make available at least $4.4 billion
to target geographic areas where some locations lack access to 25/3 Mbps broadband.10
In addition, the U.S. Department of Agriculture (USDA), through its ReConnect Program, offers federal
loans, grants, and loan/grant combinations to facilitate broadband deployment to rural areas without
access to sufficient broadband service.11 Eligible entities include cooperatives and non-profits, for-profit
companies, and state and local governments and their agencies and political subdivisions. Applicants
requesting a grant or a loan/grant combination under the ReConnect Program must submit a scoring
sheet by which USDA may analyze nine separate evaluation criteria to score the application. One of
the evaluation criteria is whether the proposed project is in a state with a broadband plan that has been
updated within the previous five years.12
Florida Broadband Program
In 2009, the Legislature authorized the Department of Management Services (DMS) to work
collaboratively with Enterprise Florida, state agencies, local governments, private businesses, and
community organizations to:
Assess the needs for broadband Internet service and develop data and maps that provide a
baseline assessment of the availability and speed of broadband service throughout Florida;
Create a strategic plan to increase use of broadband Internet service in Florida;
Build local technology planning teams representing, among others, libraries, schools, colleges
and universities, local health care providers, private businesses, community organizations,
economic development organizations, local governments, tourism, parks and recreation, and
agriculture; and
Encourage the use of broadband Internet service, especially in rural, unserved, and
underserved areas of the state through grant programs.
In 2020, the Legislature passed CS/HB 969,13 designating the Department of Economic Opportunity
(DEO) as the lead state agency to facilitate the expansion of broadband Internet service in the state.
The bill created the Office of Broadband (Office) within DEO’s Division of Community Development for
purposes of developing, marketing, and promoting broadband Internet service in the state.
CS/HB 969 (2020) maintained most of the requirements previously imposed on DMS and imposed
them instead on the new office. Specifically, the Office must:
Create a strategic plan for increasing the use of broadband Internet service in the state which
must include a process to review and verify public input regarding transmission speeds and
availability of broadband Internet service throughout the state;
Build local technology planning teams representing, among others, libraries, schools, colleges
and universities, local health care providers, private businesses, community organizations,
economic development organizations, local governments, tourism, parks and recreation, and
agriculture;
Encourage the use of broadband Internet service, especially in rural, unserved, and
underserved14 areas of the state through grant programs; and
9
U.S. Federal Communications Commission, Press Release, FCC Takes Next Stem to Ensure Collection of More Precise and
Accurate Broadband Mapping Data. January 19, 2021. https://docs.fcc.gov/public/attachments/DOC-369381A1.pdf (last visited Feb.
15, 2021).
10
U.S. Federal Communications Commission, FCC Launches $20 Billion Rural Digital Opportunity Fund,
https://www.fcc.gov/document/fcc-launches-20-billion-rural-digital-opportunity-fund-0 (last visited Feb. 11, 2021).
11
USDA, Broadband, https://www.usda.gov/broadband (last visited Feb. 11, 2021).
12
Id.
13
Ch. 2020-26, L.O.F.
14
Section 364.0135(2)(d), F.S., defines the term “underserved” to mean a geographic area of this state in which there is no provider of
broadband Internet service that offers a connection to the Internet with a capacity for transmission at a consistent speed of at least 10
Mbps downstream and at least 1 Mbps upstream
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Monitor, participate in, and provide input in proceedings of the FCC and other federal agencies
related to the geographic availability and deployment of broadband Internet service as
necessary to ensure that Florida’s rural, unserved, and underserved areas are best positioned
to benefit from federal and state broadband deployment programs.15
For these purposes, CS/HB 969 (2020) authorized DEO to apply for and accept federal grant funds,
enter into necessary or useful contracts, and establish any committee or workgroup to administer the
program.16
Regulation of Pole Attachments
The term pole attachment refers to the process by which communications companies can collocate
communications infrastructure on existing electric utility poles. Utility poles are divided into various
“spaces” for specific uses, and different vertical portions of the pole serve different functions.17 Utility
poles often accommodate equipment used to provide a variety of services, including electric power,
telephone, cable, wireline broadband, and wireless, which benefits the public by minimizing
“unnecessary and costly duplication of plant for all pole users.”18
The bottom of the pole generally is unusable for most types of attachments, although providers of
wireless services and facilities sometimes attach equipment associated with distributed antenna
systems and other small wireless facilities to the portion of the pole near the ground.19 Above that, the
lower usable space on a pole (known as the “communications space”) houses low-voltage
communications equipment, including fiber, coaxial cable, and copper wiring.20 The topmost portion of
the pole, the “electric space,” houses high-voltage electrical equipment.21 Historically, communications
equipment attachers used only the communications space; however, mobile wireless providers
increasingly are seeking access to areas above the communications space, including the electric
space, to attach pole-top small wireless facilities. When a new attacher seeks access to a pole, it is
necessary to evaluate whether adding the attachment will be safe and whether there is room for it. In
many cases, existing attachments must be moved to make room for the new attachment. In some
cases, it is necessary to install a larger pole to accommodate a new attachment.22
Federal law provides that a state or local government may not prohibit the ability of any entity to provide
telecommunications services.23 Federal law also recognizes the authority of state and local
governments to manage the public right-of-way (ROW) and to require fair and reasonable
compensation from telecommunication providers, on a competitively neutral and nondiscriminatory
basis, for the use of such ROW.24
15
S. 364.0135(4), F.S.
16
S. 364.0135(5), F.S.
17
See Florida Public Service Commission, What’s on a Utility Pole? http://www.psc.state.fl.us/ConsumerAssistance/UtilityPole (last
visited Mar. 17, 2021).
18
S. REP. NO. 95-580, at 13 (1977), as reprinted in 1978 U.S.C.C.A.N. 109, 121.
19
See EEI Oct. 3, 2017 Wireline Ex Parte Letter at Attach. Pole Attachments: Safety and Reliability; Crown Castle
Wireline NPRM Comments at 5.
20
PSC, supra, note 1.
21
PSC, supra, note 1.
22
FCC-CIRC1808-03 at 4-5.
23
47 U.S.C. § 253(a).
24
47 U.S.C. § 253(c) states that “Nothing in this section affects the authority of a State or local government to manage the public
rights-of-way or to require fair and reasonable compensation from telecommunications providers, on a competitively neutral and
nondiscriminatory basis, for use of public rights-of-way on a nondiscriminatory basis, if the compensation required is publicly
disclosed by such government.”
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Congress began regulating pole attachments25 in 1978.26 The Telecommunications Act (Act) of 199627
expanded pole attachment rights to telecommunications28 carriers. The Act requires utilities29 to provide
nondiscriminatory access to cable television systems and telecommunications carriers. The Act also
authorizes the FCC30 to regulate the rates, terms, and conditions of attachments by cable television
operators to the poles, conduit, or ROW owned or controlled by utilities in the absence of parallel state
regulation.31 The Act withheld from FCC jurisdiction the authority to regulate attachments where the
utility is a railroad, cooperatively organized, or owned by a government entity.32
In April 2011, the FCC approved a pole attachment order which established a revised
telecommunications formula and included make-ready33 provisions which provided a benchmark for
pole attachment rates and access.34
In September 2018, the FCC issued an order35 which preempted state and local laws and agreements,
including those related to pole